A workshop on the recently launched Bharat Maritime Insurance Pool (BMIP) was organized at the Shipping Corporation of India auditorium in Mumbai in collaboration with the Directorate General of Shipping and the General Insurance Council. The event brought together key stakeholders including shipowners, cargo owners, and shipping lines to discuss maritime insurance solutions and sector development.
Dr. Debashish Prusty, Additional Secretary DFS, inaugurated the workshop and highlighted significant premium reductions achieved through BMIP: 27% reduction for hull war risk covers and 48% reduction for cargo war risk covers. He outlined a three-step roadmap for developing India's domestic P&I insurance ecosystem: achieving sovereignty in maritime trade through domestic P&I product development, scaling BMIP covers to selective ocean-going vessels in collaboration with the Ministry of Ports, Shipping and Waterways, and exploring integration with International Group P&I Clubs through mutual club formation compatible with international standards.
Mr. Shyam Jaganathan, Director General of Shipping, reported a 36% growth in Indian tonnage since 2015, reaching 1600 vessels as of the reporting period. He also highlighted significant geopolitical impacts on maritime trade, including an 86% decline in traffic through the Strait of Hormuz and a 10% increase in oil prices due to current instability. The government's efforts through BMIP have ensured continuous insurance coverage despite these challenges.
Ms. Girija Subramanian, CMD of NIACL, emphasized BMIP as a platform to develop a reliable, sustainable, and internationally respectable P&I framework for Indian requirements. GIC Re's CMD acknowledged the pool's potential to provide support for insuring maritime risks and achieve sovereign control over this essential aspect of trade. The pool manager, GIC Re, addressed queries from shipowners and associations regarding coverage, with deliberations continuing with marine underwriters, adjustors, and correspondents on devising a P&I insurance product to meet immediate national needs.
The workshop recognized that maritime trade faces significant pressure in the current global environment marked by volatility and geopolitical instability, with Indian vessels highly dependent on International Group P&I Clubs for third-party liability insurance. The BMIP extends sovereign guarantee benefits to clients/ship owners through lower premiums, making maritime trade insurance more affordable.